India's Allcargo Logistics eyes potential stake sale in ECU Worldwide

Allcargo Logistics

28/09/2021 08:25

BENGALURU, Sept 28 (Reuters) - Cargo and air freight
logistics firm ECU Worldwide is looking to raise funds and has
appointed Jefferies Financial to evaluate options, its
Mumbai-based parent Allcargo Logistics  ACLL.NS  said on
Tuesday.
    The Indian company is working with an adviser on a potential
minority or majority stake sale and is seeking a deal that would
value ECU at about $1 billion, Bloomberg News reported https://www.bloomberg.com/news/articles/2021-09-27/india-s-allcargo-is-said-to-weigh-selling-stake-in-ecu-unit?sref=I5jUJbND
 on Monday evening.
    "It is premature to comment on what percentage of stake we
will actually sell and at what value," Allcargo Chief Strategy
Officer Ravi Jakhar told Reuters.
    ECU worldwide, a unit of Allcargo Logistics, offers cargo or
container space on ships to customers across the globe. It has a
nearly 40% market share in ocean freight consolidation in the
Nordic region.  urn:newsml:reuters.com:*:nFWN2P524H
    On valuation, Jakhar said the company does not have any
guidance and any numbers mentioned by any third party are
"purely speculative".
    Shares of Allcargo Logistics rose as much as 4% on Tuesday,
but gave up gains and was trading down about 0.8% by 0710 GMT
amid a drop in the broader market.

 (Reporting by Shivani Singh in Bengaluru; Editing by Arun
Koyyur)
 ((ShivaniSingh1@thomsonreuters.com; +91 89 6969 2349))